This course will teach you the fundamentals of managerial accounting including how to navigate the financial and related information managers need to help them make decisions. You'll learn about cost behavior and cost allocation systems, how to conduct cost-volume-profit analysis, and how to determine if costs and benefits are relevant to your decisions.
By the end of this course, you will be able to:
- Describe different types of costs and how they are represented graphically;
- Conduct cost-volume-profit analyses to answer questions around breaking even and generating profit;
- Calculate and allocate overhead rates within both traditional and activity-based cost allocation systems;
- Distinguish costs and benefits that are relevant from those that are irrelevant for a given management decision;
- Determine a reasonable course of action, given the financial impact, for a given management decision.

From the lesson

COST ALLOCATION

After learning how to conduct cost-volume-profit analyses, we're ready to discuss cost allocation and the different types of systems we can use: traditional and activity-based. From there, we'll learn how to calculate overhead rates and allocate overhead within both types of systems.